In an interview airing Saturday on CBC Radio’s The House, Carney told host Evan Solomon there are “issues in some segments” of the housing market but stopped short of saying a housing bubble exists in Canada.
“There are issues particularly in some parts of the country, in the condo market, without question, where activity has been particularly strong … and in some of our major cities, without question, evaluations are extremely firm,” Carney said.
We could be heading for trouble? Nicole Foss was on the Mas Keiser show over a year ago warning about this.
I personally do not think the housing bubble will “pop” in a degree of 90% as Nicole states, but we are going to experience a severe crisis.
In December of 2011 this article was published in the Toronto Star.
Canadian house prices overvalued by 10 per cent, IMF warns
“The International Monetary Fund says Canadian house prices are over-valued by about 10 per cent, and more so in some areas.
The Washington-based monitor also said Canada is facing risks both at home and abroad as the global economy slows.
Record-high household debt and an overheated housing market are among those risks, it stated..”
I have been watching this situation unfold since 2008. Canada’s housing bubble was not adverted, but rather delayed.
Couple this with the fact that average household debt is at a record high (148% of income), Moody’s has already lowered Ontario’s credit rating from triple A to double A, and we are now already facing austerity cuts.
Well lets just say the Canadian economic situation is not a rosy as the politicians like to make it out to be.